May 08, 2015
Englewood - Gevo, Inc. (Nasdaq:GEVO) announced today that it has signed a strategic alliance agreement with Alaska Airlines to purchase Gevo's renewable jet fuel and fly the first-ever commercial flight on alcohol-to-jet fuel (ATJ).
The demonstration flight is expected to occur after Gevo receives ASTM International certification for its fuel, sometime in mid to late 2015. Gevo has been working through the rigorous ASTM process for six years, which includes extensive engine testing and data analysis by all of the major original equipment manufacturers to establish the specification for this drop in fuel. Once approved, this fuel can be seamlessly integrated into the existing distribution infrastructure and onto commercial aircraft.
"Developing a domestic, competitively priced, sustainable supply of biofuels is fundamental to the future of American aviation," said Joe Sprague, senior vice president of external relations at Alaska Airlines. "The cost of fossil-based jet fuel is one of the largest expenses for airlines. This investment in Gevo's ATJ will help reduce our exposure to high fuel prices, minimize our carbon footprint and demonstrate growing demand for fuel alternatives."
"A sustainable biofuels industry would help insulate airlines from fuel price spikes, enabling them to offer economical air travel while remaining profitable, while helping meet their environmental goals, and spur economic growth within and outside of aviation," said Dr. Patrick Gruber, Gevo's Chief Executive Officer. "We greatly appreciate Alaska Airlines as a commercial partner as we move towards commercialization."
Gevo's patented ATJ is a clean burning, homegrown, drop-in jet fuel, which has the potential to deliver aviation biofuels at scale and at competitive cost.
Alaska Airlines was the first U.S. airline to fly multiple commercial passenger flights using a biofuel from used cooking oil. The carrier flew 75 flights between Seattle andWashington, D.C. and Seattle and Portland in November 2011. The airline has set a goal to using sustainable aviation biofuel at one or more of its airports by 2020.
Gevo is a leading renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo's strategy is to commercialize biobased alternatives to petroleum-based products to allow for the optimization of fermentation facilities' assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, MN. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, TX, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. andTotal SA, among others. Gevo is committed to a sustainable bio-based economy that meets society's needs for plentiful food and clean air and water.